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2. Leveraging existing sites. When third parties link to your website, it boosts the ranking of your site on search result lists. Companies offering these services have well established sites they use to begin improving the ranking of your website.
3. Other inbound links. In addition to adding links from their own properties, these sites leverage directories, press releases, and article distribution sites to improve your ranking.
The real issue I have here is that if a company is going to improve where you rank for certain keywords, great. However, if those keywords aren't competitive, won't generate traffic or create the targeted visitors you need, then it's not worth it. Think about this fact before you spend your hard earned money on some seo service.
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